Equifax Canada says an increase in borrowers helped push total consumer debt to $2.36-trillion in the third quarter for a 7.3 per cent rise from last year, even as mortgage volumes decline.
Rebecca Oakes, Equifax Canada’s head of advanced analytics, says the rising debt stems from a combination of growth from immigration, pent-up spending, as well as increased borrowing as consumers feel the strain of higher living costs. There’s been an increase in credit card spending and new cards issued across all consumer segments, including the subprime segments, said Oakes in a statement.
Delinquencies on auto loans have also started to trend up, especially those opened since late 2021, she said.
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